A Brazilian federal court has overturned an injunction that blocked a proposed tie-up between plane makers Embraer and Boeing, Embraer said on Monday in a securities filing.
Embraer announced in July its intention to sell 80 per cent of its commercial aviation business to Boeing for $3.8 billion. Embraer has said the deal is crucial for its survival. The injunction brought by four congressmen from Brazil’s left-wing Workers Party had been granted on Thursday.
Brazil’s solicitor general’s office confirmed the injunction that halted Embraer’s negotiations with Boeing had been thrown out.
The government’s top lawyer had asked the court to overturn the injunction, arguing that it violated the constitutional right to freedom of enterprise by interfering in the negotiations between two private companies.
Trading of Embraer ADRs on the New York Stock Exchange was halted pending news.